Analyzing Emerging Markets (2)
Last week we talked about the affordability index Analysis 1 today let’s discuss
Job Growth: If a market is not gaining jobs chances are the market is not doing so well. Check with local government to see what if any programs are in place to attract jobs. When you see a local market such as those markets in the go-Zone (Alabama, Mississippi, Louisiana) have massive incentives to attract jobs, those markets may be poised for growth.
Unemployment rates: Check with a market to see what that particular markets average unemployment rate is (this will very market by market do to age of population, density and many factors) what we are looking for are area’s where the average unemployment for the area is shrinking and in fact gaining jobs.www.BLS.gov can give great insight into where jobs are going.
When a market that is undervalued (Analysis 1 ) also has great Job growth you are starting the recipe for a nice growth market.
Example of States with Job growth:
Montgomery Alabama: job Growth +.6% totalunemployment 5.9%
Boulder Colorado job growth +1.2% total unemployment 4.8%
New Orleans Louisiana job growth +1.5% total unemployment 4.9%
Austin Texas job growth +1.6% total unemployment 5.0%
Dallas Texas job growth +1.8% total unemployment 5.5%
(Source John Burns R.E. Consulting)
In fact most major cities in Texas is currently experiencing Job growth do to Natural Gas and Oil industry being so strong.
Next week lets discuss how building permits plays a role in identifying those markets